Besix wins billion dirham PPP water deal in Ajman

First-of-its-kind US $333 million contract could pave the way for more PPP water deals in Gulf.

Belgian contractor Besix has taken a US $333 million (AED1.2 billion) PPP contract covering the operation of wastewater services in Ajman. The contractor owns one third of an operating company, the remaining two thirds of which are owned by international utility group Veolia Water. “This operating contract for wastewater services is the first ever to be awarded to a private operator. “It is a clear sign of the opening up of the Gulf countries to public-private partnerships for water services, which have traditionally been managed by public authorities,” said Antoine Frérot, chief executive of Veolia Water. The operating contract is for 27 years and is one of the first major deals of this type to be awarded in the UAE. Veolia Water also has a 20% stake in the concession company, alongside Besix (50%), Black & Veatch (10%) and the Government of Ajman (20%). The concession contract covers construction of the wastewater treatment plant with a maximum capacity of 90 000 m3 per day, installation of the 230-km collection system and service lines to homes. The operating contract includes overseeing the construction work — in phases between 2007 and 2009 — until delivery by the concession company. The contract also covers billing. The wastewater collection and treatment services for the emirate of Ajman will be the first in the Gulf region to be billed directly to customers.